“For some debtors, the only answer they can think of is resorting to a payday loan or loan sharks, but these are fraught with problems.

“Let’s face it, the name of the latter alone should put you off in the first place, because if you use one and fail to pay back what you have borrowed, the shark’s teeth will bite down hard and for some time, which could leave a nasty scar on more than your credit rating.

“Do not even think about using a payday loan as a long term method of borrowing money, you will make your situation a whole lot worse.”

The research also showed two thirds of those with problematic unsecured debt have got into trouble in the past three years.

The firm said job loss was a major cause of spiralling debt with one client saying: “Due to the recession I was made redundant and had to relocate to find work.

“I found a job but with less pay my debt started to build up from trying to cover the costs of living.”

Bankruptcy was rated as the most effective final solution to debt problems with 93% saying it was effective compared to 7% who said the solution had failed.

IVAs came in second with 91% saying the solution “was working” compared to 9% who said it had failed.

Some 84% described DMPs as “working solutions” compared to 16% who said a DMP had failed to solve their debt problems.

The highest failure rate came when people tried to manage their debt on their own. Over half (54%) said it had failed compared to those who said it “was working” (46%).

Rees added: “It is not surprising to see that bankruptcy and IVAs are thought of as the most effective debt solutions.

“An IVA can reduce your debt up to 75% in some cases, although usually the figure will be lower.

“Getting a bank account after bankruptcy is not easy and it will appear on your credit rating for five to six years. It is better to deal with your debt and try other solutions before you get to the stage of bankruptcy.”

The research also revealed that almost half (44% of respondents) said they thought paying a debt consultant to manage their debt was most effective compared to almost a third (32%) who preferred to use free money advice services.

Almost a quarter (24%) said managing the debt themselves was the most effective way in clearing debt.

Rees said: “Speaking to a debt adviser, whether the advice is free or not, to get some help in the first instance will help to get you back on the right track.”